Washington vs Federal Tax Comparison
| Tax Type | WA State Rate | Federal Rate | Notes |
|---|---|---|---|
| Personal Income Tax | None | Federal: 10–37% | No state layer |
| Corporate Income Tax | None | Federal: 21% | No corporate income tax; B&O tax on gross receipts |
| State Sales Tax | 6.5% | No federal sales tax | Combined avg: 9.38% |
| Capital Gains Tax | 7% | Federal: 0–20% | Special rate may apply |
About Washington Taxes
No income tax on wages; 7% capital gains tax on gains over $270k (2023).
As a no-income-tax state, Washington attracts remote workers, retirees, and high-income earners seeking to reduce their overall tax burden. The absence of state income tax does not eliminate federal income tax obligations, which remain 10–37% depending on filing status and income level.
Corporate activity in Washington faces a no state corporate income tax. No corporate income tax; B&O tax on gross receipts. Combined with the 21% federal corporate rate, businesses should plan accordingly.
Calculate Your Net Salary in Washington
See federal + WA state tax deductions, Social Security, Medicare, and take-home pay
Open US Salary CalculatorFrequently Asked Questions — Washington Taxes
Does Washington have a state income tax?
No. Washington (WA) does not impose a state income tax on wages or salaries. This makes it one of nine US states with no income tax, alongside Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming.
What is the corporate income tax rate in Washington?
Washington does not levy a traditional corporate income tax. No corporate income tax; B&O tax on gross receipts. This makes Washington attractive for business incorporation and holding company structures.
What is the sales tax rate in Washington?
Washington has a state sales tax of 6.5%. When local city and county taxes are included, the average combined rate reaches 9.38%. Rates vary by locality so check the specific municipality for accurate figures.
How does Washington compare to neighboring states for taxes?
Washington's overall tax burden ranks favorably among US states. The state has no income tax. For individuals evaluating relocation or remote work, comparing the full picture — income, sales, and property taxes — is essential. Use our US Salary Calculator to estimate your net income in Washington.
Are there any special tax incentives or exemptions in Washington?
Washington offers notable tax characteristics: No income tax on wages; 7% capital gains tax on gains over $270k (2023). Businesses and individuals should consult a qualified tax advisor to understand eligibility for available credits, deductions, and incentives specific to Washington.
Other No-Income-Tax States
Nine US states impose no state income tax on wages:
Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas WyomingCost of Living in Washington
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